FTSE weakens on China threat
Fiona Cincotta November 13, 2019 5:26 AM
Instead of the conciliatory tone on China trade talks that the market has been hoping for President Trump opted for the tougher approach in his comments yesterday, knocking risk sentiment.
Instead of the conciliatory tone on China trade talks that the market has been hoping for President Trump opted for the tougher approach in his comments yesterday, threatening to increase tariffs if the current round of Sino-US negotiations doesn’t produce some sort of an interim agreement. The Chinese delegation has been pushing for a rollback in tariffs and recently said that the US side had agreed to it, something US negotiators and Trump have denied. Now the two sides are back at loggerheads and investors’ sentiment is sinking.
Coca Cola shoots up as pre-Christmas revenues rise
The FTSE is nearly half a point lower – and sliding - with ITV, insurers and miners all trading lower, the latter hardest hit by China comments. ITV saw some profits being taken off the table after yesterday’s post-trading update rally while trade tensions and the escalation of riots in Hong Kong put HSBC and other major banks under pressure.
Coca Cola provided a rare bit of counterbalance, shooting to the top of the index after reporting a solid quarterly increase in revenue. Sales in the fourth quarter have already started accelerating ahead of the busy pre-Christmas period.
Sterling firms against euro
Sterling is trading in synch with election news, rising against the euro after polls showed that the Conservatives have increased their lead over Labour in the last three days. The pound is reacting the most to the prospect of a simple majority and a stable government and any news pointing to a hung parliament is causing more volatility. The pound dipped against the dollar in early trade but has since recovered slightly.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.